Search found 2 matches

by pschweim
Thu May 05, 2016 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: Owner's Draw Tax Questions
Replies: 4
Views: 738

Re: Owner's Draw Tax Questions

Your share of the earnings from the LLC are taxable. I think the amount of the draws is not relevant. You owe tax on the earnings even if you take no draws. Are you sure these are draws and not some type of salary? +1 I am involved in several partnership LLCs incorporated in KY, so that's the basis of my experience and comments. In my world, if truly an owner draw, it is a capital transaction and irrelevant for taxes. However, LLC net income (profit) passes through to the partners and is taxable. The LLC is a disregarded entity. Income is reported on K-1 forms and must be included in your state and federal returns. Thank you both! Sorry I'm replying late-- I totally forgot about this. But I know that we classified them as equity when I was...
by pschweim
Tue May 03, 2016 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: Owner's Draw Tax Questions
Replies: 4
Views: 738

Owner's Draw Tax Questions

Hi there! Sorry if this is a topic that gets asked a lot-- the tax world is an extremely confusing place and despite all my Googling, I'm finding different answers and I'm not sure which is correct. Basically, I started a business (LLC) with my brother about 4 years ago come this fall, and the business is in Kansas. I moved to Missouri after getting married in 2014, and between the time I moved and mid-March of this year, I wasn't working for the studio, but was still listed as an owner. I received draws while I worked there before, but not since I moved up. However, in mid-March of this year, I began working remotely for the studio again, and have been receiving an owner's draw monthly. My questions are these: 1. Is this draw taxable at an...